Posted by on Apr 20, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Christophe Vorlet


By Jason Zweig | April 20, 2018 12:30 pm ET


David Winters, a veteran value investor, has a provocative idea: Index funds aren’t the dirt-cheap choice we all believe them to be.

These autopilot portfolios that seek to match the market, not to beat it, have become the most popular investment vehicle in history. Tens of millions of investors hold roughly $4 trillion in U.S. stock index funds — which report annual ownership costs as low as 0.03%, or $3 on a $10,000 investment.

Those expenses are drastically understated, says Mr. Winters, portfolio manager of Wintergreen Fund. In his latest letter to shareholders in the $303 million fund, Mr. Winters argues that the typical S&P 500 index fund incurred ownership costs exceeding 4.3%, or more than $430 per $10,000, in 2016.


To read the rest of the column: 

The Wall Street Journal




For further reading:


Jason Zweig, Your Money and Your Brain

Jason Zweig, The Devil’s Financial Dictionary

Benjamin Graham, The Intelligent Investor




Index Funds Rule the World, But Should They Rule You?

Would Benjamin Graham Have Hated Index Funds?

Another Note on Benjamin Graham and Index Funds

Do Big Mutual Funds and ETFs Hurt Your Wallet?

The Rot That Lies Beneath Some Index Funds

How Closet Indexing Minimizes the Fund Manager’s Risk — Not Yours

Birth of the Index Mutual Fund: ‘Bogle’s Folly’ Turns 40

The Market Really Is Different This Time

Are Index Funds Eating the World?

And Now for Something on Index Funds

For further reading:

Lucian A. Bebchuk, Alma Cohen, and Scott Hirst, “The Agency Problems of Institutional Investors

Miriam Schwartz-Ziv and Russ Wermers, “Do Institutional Investors Monitor Their Large vs. Small Votes Differently?”